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Borders matter!: Regional integration in Europe and North America

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  • Blum, Ulrich

Abstract

We analyze the spatial interaction among regions in North America and in Western Europe. We use a gravity model extended by a spatial correlation structures where data allows to evaluate the level of impact and the length of the spatial tail. This allows us to address to effects external to the gravity model: level of impact of neighboring regions on the region and size of the cluster of regions. We find that the methodology employed improves the statistical quality of results and their economic interpretation. We conclude that national borders matter and that North America is more polarized in the sense of connected clusters whereas regions Europe externalities are more evenly distributed. We argue that this relates to different types of institutional arrangements with effects on the spatial division of labor. --

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Paper provided by Dresden University of Technology, Faculty of Business and Economics, Department of Economics in its series Dresden Discussion Paper Series in Economics with number 08/01.

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Date of creation: 2001
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Handle: RePEc:zbw:tuddps:0801

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  2. McCallum, John, 1995. "National Borders Matter: Canada-U.S. Regional Trade Patterns," American Economic Review, American Economic Association, American Economic Association, vol. 85(3), pages 615-23, June.
  3. Andrew B. Bernard & Steven N. Durlauf, 1994. "Interpreting Tests of the Convergence Hypothesis," NBER Technical Working Papers 0159, National Bureau of Economic Research, Inc.
  4. Nijkamp, Peter, 1975. "Reflections on gravity and entropy models," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 5(2), pages 203-225, May.
  5. Martin, Philippe & Rogers, Carol Ann, 1995. "Stabilization Policy, Learning by Doing, and Economic Growth," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1130, C.E.P.R. Discussion Papers.
  6. Blum, U. & Bolduc, D. & Gaudry, M., 1990. "From Correlation to Distributed Contiguities: a Family of Ar-C-D Autocorrelation Processes," Cahiers de recherche, Universite de Montreal, Departement de sciences economiques 9031, Universite de Montreal, Departement de sciences economiques.
  7. Robert J. Barro, 2013. "Inflation and Economic Growth," Annals of Economics and Finance, Society for AEF, vol. 14(1), pages 121-144, May.
  8. Ulrich Blum & Leonard Dudley, 1999. "The Two Germanies: Information Technology and Economic Divergence, 1949-1989," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, Mohr Siebeck, Tübingen, vol. 155(4), pages 710-, December.
  9. Abigail Barr, 1995. "The missing factor: entrepreneurial networks, enterprises and economic growth in Ghana," Economics Series Working Papers WPS/1995-11, University of Oxford, Department of Economics.
  10. Rietveld, Piet & Wintershoven, Patrick, 1997. "Border effects and spatial autocorrelation in the supply of network infrastructure," Serie Research Memoranda 0030, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  11. Chatterji, Monojit, 1992. "Convergence Clubs and Endogenous Growth," Oxford Review of Economic Policy, Oxford University Press, Oxford University Press, vol. 8(4), pages 57-69, Winter.
  12. Sala-i-Martin, Xavier, 1994. "Regional Cohesion: Evidence and Theories of Regional Growth and Convergence," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1075, C.E.P.R. Discussion Papers.
  13. Xavier Sala-i-Martin, 1995. "Transfers, social safety nets and economic growth," Economics Working Papers 139, Department of Economics and Business, Universitat Pompeu Fabra.
  14. Targetti, Ferdinando & Foti, Alessandro, 1997. "Growth and Productivity: A Model of Cumulative Growth and Catching Up," Cambridge Journal of Economics, Oxford University Press, Oxford University Press, vol. 21(1), pages 27-43, January.
  15. Blum, U.C.H., 1987. "A Distributed "Lag" for Spatially Correlated Residuals," Cahiers de recherche, Universite de Montreal, Departement de sciences economiques 8711, Universite de Montreal, Departement de sciences economiques.
  16. Peter Nijkamp & Jacques Poot, 1998. "original: Spatial perspectives on new theories of economic growth," The Annals of Regional Science, Springer, Springer, vol. 32(1), pages 7-37.
  17. Masahisa Fujita & Tomoya Mori, 1998. "original: On the dynamics of frontier economies: Endogenous growth or the self-organization of a dissipative system?," The Annals of Regional Science, Springer, Springer, vol. 32(1), pages 39-62.
  18. Barros, Pedro Pita & Garoupa, Nuno, 1996. "Portugal-European Union convergence: Some evidence," European Journal of Political Economy, Elsevier, vol. 12(3), pages 545-553, November.
  19. Didier Plat & Charles Raux, 1998. "Frontier impedance effects and the growth of international exchanges: an empirical analysis for France," Post-Print halshs-00144768, HAL.
  20. Button, Kenneth J & Pentecost, Eric J, 1995. "Testing for Convergence of the EU Regional Economies," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 33(4), pages 664-71, October.
  21. Quah, Danny T., 1996. "Empirics for economic growth and convergence," European Economic Review, Elsevier, Elsevier, vol. 40(6), pages 1353-1375, June.
  22. Baumol, William J, 1986. "Productivity Growth, Convergence, and Welfare: What the Long-run Data Show," American Economic Review, American Economic Association, American Economic Association, vol. 76(5), pages 1072-85, December.
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